Tribunal Rules Cooperative Credit Society's Bank Interest Income Eligible for Tax Deductions Under IT Act Sections 80P(2)(a)(i) & 80P(2)(d.

The Tribunal allowed the appeal filed by the appellant, a Cooperative credit society, against the National Faceless Appeal Centre's order for the assessment year 2018-19. It held that interest income earned on fixed deposits with cooperative/scheduled banks qualifies for deduction under sections 80P(2)(a)(i) and 80P(2)(d) of the Income Tax Act, 1961. This decision, grounded in various judicial opinions, clarified the eligibility criteria for such exemptions, ultimately favoring the assessee by granting the requested tax deductions.

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Issues involved:
The judgment deals with the eligibility of a Cooperative credit society for exemption u/s 80P(2)(a)(i) or u/s 80P(2)(d) of the Income Tax Act, 1961, specifically focusing on the allowability of exemption for interest income earned from cooperative banks.

Eligibility for exemption u/s 80P(2)(a)(i) or u/s 80P(2)(d) of the Act:
The appellant, a Cooperative credit society, filed an appeal against the order of the National Faceless Appeal Centre regarding the assessment year 2018-19. The Assessing Officer had brought to tax the interest earned on fixed deposits with cooperative banks, stating it does not qualify for deduction u/s 80P(2)(a)(i) of the Act. The Tribunal considered various judicial opinions and held that interest income earned on fixed deposits with cooperative/scheduled banks qualifies for deduction u/s 80P(2)(a)(i) of the Act. Citing relevant court decisions, the Tribunal allowed the exemption u/s 80P(2)(a)(i) and section 80P(2)(d) of the Act, ultimately allowing the appeal filed by the assessee.

Conclusion:
The judgment clarified the eligibility of a Cooperative credit society for exemption u/s 80P(2)(a)(i) or u/s 80P(2)(d) of the Income Tax Act, emphasizing that interest income earned on fixed deposits with cooperative/scheduled banks qualifies for deduction. The decision was based on a thorough analysis of relevant court precedents and resulted in the allowance of the appeal filed by the assessee.

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